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A and B are sharing profits and losses equally. With effect from 1st April, 2018, they agree to share profits in the ratio of 4 : 3. Calculate individual partner’s gain or sacrifice due to the change in ration.

Answer» N:Old Ratio (A and B) = 1 : 1 New Ratio (A and B) = 4 : 3 Sacrificing Ratio (or Gaining)=Old Ratio - New Ratio A's Share= = = (Gain)B's Share = =   = (SACRIFICE)∴ A's Gain = 1/14 and B's Sacrifice = 1/14


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